I requested a refund of 9.99 for a purchase made through paypal using my bank account, amd received an email saying I had been issued a refund to my paypal balance. I had nothing in my paypal balance, went to check my bank account and discovered that 9.99 had been taken from my account under 'ACH Debit Paypal'
If you funded the payment to the seller using bank transfer. What PayPal do here is credit the recipient on your behalf (so there is no delay in despatching your item). Then if you receive a refund in the meantime they are unable to issue this until the original bank transfer completes.
Once marked as complete it would take a few days to go back to your bank account, allow 5-7 days.
